Thursday, September 29, 2011

E&Y Says Greek Default Seems Unavoidable; Sees Risk of Recession
BusinessWeek
29 (Bloomberg) -- A Greek default is inevitable and there is 35 percent chance of the euro-area economy slipping back into recession, Ernst & Young said. “The euro zone sovereign-debt crisis shows no sign of abating,” E&Y said in an e-mailed report in ...

Portugal PM says country vulnerable if euro zone default
Reuters
LISBON, Sept 28 (Reuters) - Portugal's Prime Minister Pedro Passos Coelho said on Wednesday his country would be vulnerable if any country in the euro zone were to default on its debts. "I don't want any country to default but if this were to happen, ...

Managing a Greek Default
Council on Foreign Relations
Economists say it is no longer a question of if Greece will default, but when--and how. Whether a Greek default is orderly or disorderly will determine the level of contagionto the rest of the eurozone. The debt crisis has generated as much as €300 ...

Sovereign Debt Turmoil Risks Financial Contagion -ECB's Mersch
Wall Street Journal
Concerns that weak euro-zone governments will default have made banks wary of lending to other banks that hold this sovereign debt. Potential funding shortages at European banks are the ECB's top concern right now and are "the main topic of most of our ...

Lenders Turn Global Favorite in Default Swaps: Australia Credit
BusinessWeek
Corporate spreads have expanded as concerns that Europe won't contain the fiscal crisis that started in Greece spurred rallies in US Treasuries and Australian government debt. The benchmark Australian 10-year yield rose nine basis points, ...

Financial glossary: D-H
BBC News
The current financial crisis has thrown terminology from the business pages onto the front pages of newspapers, with jargon now abounding everywhere from the coffee bar to the back of a taxi. Here is a guide to many of the business terms currently ...

Talk Of Greek Default Could Become Self-Fulfilling Prophecy
Seeking Alpha
The gravity of the Greek debt situation is underlined by the growing acceptance among policymakers in Europe that default is possible — or in the view of some, inevitable — for Greece, writes Oxford Analytica. Attempts to ring-fence the default ...

Austerity for the long haul
San Francisco Chronicle (blog)
Rising interest rates could cause a huge fiscal crisis given current US debt levels. Debt hobbles growth, she said, and so we can expect at least a decade of economic malaise, not just in the United States but in all the advanced economies.

Sovereign Default: Panic Versus Fundamentals
Wall Street Pit
And if there is default on government debt, it will have an effect on the balance sheets of European financial institutions and this is the source of the recent concerns about the solvency of some of these institutions. Stress tests are designed to ...

Miliband Admits Fiscal Crisis 'Down To Labour'
4RFV
Now, the Labour boss has admitted: "We take responsibility for the financial crisis that took place in 2007-2008. "We along with other governments didn't regulate the banks properly." The opposition leader said he hoped his speech to the party's annual ...

Argentina 2001-02 meltdown ugly example for Greece
Reuters
The lessons of those chaotic months are sobering ones for any government considering worst-case scenarios to cope with financial crisis. As Argentines rushed to open accounts under the names of relatives to skirt limits on bank withdrawals, ...

TEXT-Fitch: Defaults Up Slightly for US Bank TruPS CDOs
Reuters
Bank TruPS CDO defaults rose 0.28% to 16.5% from 16.2% last month due to the same percentage of August deferrals transitioning to default. 'The increase in bank TruPS CDO defaults was driven by previously deferring banks,' said Director Johann Juan. ...

Mosler: Why Greece should not be allowed to default
Credit Writedowns
Moreover, the ECB's holding Mosler bonds will shift the default option from the issuer to the ECB, as in the case of non-payment, the ECB would have the option to make its holdings available for sale to tax payers of that nation to offset their taxes. ...

Ask the experts: Eurozone crisis
BBC News
By Laurence Knight & Ian Pollock Business reporters, BBC News Last month, the BBC asked viewers what questions they had about their finances, particularly given fears about a renewed financial crisis and recession. Here, BBC journalists Laurence Knight ...

TEXT-Fitch affirms Luxembourg at 'AAA'
Reuters
Buoyant growth since Q409 means that GDP exceeded the peak before the financial crisis of 2008 by end-2010. Fitch expects even higher growth in 2011 of 3.8%, mainly due to strong base effects from Q410. However, beyond 2011 Fitch forecasts a gradual ...

EU faces 'biggest financial crisis'
East Coast Radio
By Sky News The president of the European Commission is warning the European Union faces the biggest financial crisis in its history. Jose Manuel Barroso's comments come as there has been widespread criticism that leaders are acting too slowly in ...

Anatomy of a Credit Contagion
Money Morning Australia
It has the ability to trigger a credit crisis on par with that experienced in 2008. I'll explain why in a moment. But first, let's look at the parallels to Austria in 1931. Here's what I wrote last year: 'It is worth remembering that upheavals in ...

'Possible Greek default will not have direct impact on Turkey'
Today's Zaman
According to analysts at the Foreign Economic Relations Board (DEİK), the possibledefault in Greece will not have any significant effect on the trade volume between Greece and Turkey. In fact, recent numbers announced by the Turkish Statistics ...

Flying PIIGS by Gary North
The Greek government is going to default on its interest payments to the bonehead European bankers and investors who thought that getting high interest rates on Greek debt was a great way to avoid suffering the low-interest rates on German ...
LewRockwell.com

Bloomberg: Government Should Make Healthy Choices The “Default
By Rob Port
Bloomberg: Government Should Make Healthy Choices The “Default Option” For Americans. Rob Port • September 28, 2011. Tweet. This is how it starts. They say they're just making the right choices the easiest ones to make. But then, they ...
Say Anything

TDIMG Inside Edition – 9/28/2011: Lipstick on The PIIGS : The ...
By The Disciplined Investor (The Disciplined Investor)
Greek lawmakers voted today on a property tax that is key to convincing the the EU and IMF to release an aid installment and avert default of Greece. This is simply a ploy to cook the books in a way that shows there will be money available to ...
The Disciplined Investor

Financial crisis: the “broker” of the BBC assured that Goldman Sachs ...
By Stock Market TodayFinancial crisis: the “broker” of the BBC assured that Goldman Sachs' head of the world. Posted on September 28, 2011 by Stock Market Today. The man presented as a broker by the BBC and that created a buzz on the internet by confessing ...
Stock Market Today News - Market Watch

Greece would probably benefit from devaluation and default ...
By Shaun Richards
The second is one of logic. When the financial crisis began European politicians were very critical of what they called Anglo-Saxon financial engineering such as securitisations and collaterised debt obligations. As this as a minimum would be ...
Mindful Money

Labour must never again be captive to bankers « Debtonation: The ...
By Georgia Lee
“I have just returned from a lecture tour of Australia where I came across the story of the Sydney Diocese and what the Aussies call the GFC – the Global Financial Crisis. The Sydney Diocese, far from chasing the money-lenders from the ...
Debtonation: The Global Financial Crisis

MOSLER BONDS FOR THE ECB AND WHY GREECE SHOULDN'T ...
By Warren Mosler
The ECB holding Mosler bonds will shift the default option from the issuer to the ECB, as in the case of non-payment, the ECB would have the option to make its holdings available for sale to taxpayers of that nation to offset their taxes.
PRAGMATIC CAPITALISM